Ala. County’s $1.2B Debt Reduction Plan Stings JPMorgan

By Lance Duroni

Law360, Chicago (July 1, 2013, 2:56 PM ET) -- Jefferson County, Ala., on Sunday unveiled a plan to trim its burdensome sewer debt by over $1.2 billion — with lender JPMorgan Chase & Co. absorbing a majority of the losses — keeping the county on track to emerge from bankruptcy by the end of the year.

The so-called “plan of adjustment” will pay out over $1.83 billion to creditors owed just over $3 billion in principal on financing for a sewer overhaul that went sour and plunged the county into the biggest Chapter 9 bankruptcy...